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Is California a sinking ship? California and regional agencies have heaped so many taxes, rules and regulations on state businesses that the whole enterprise is about to founder, a group of businessmen told local Republican State Assemblymembers at a forum in Anaheim today. “California is dead. The ship is sinking and it’s going down,” said Bill Taormina, whose family founded Anaheim Disposal and who now is chief executive of Clean City, Inc. He complained about legislators more concerned about raising campaign contributions than solving business problems. “This is the first time I’ve been asked to speak without writing check,” said Taormina. “It’s pay to play.” He also criticized a general lack of concern by government about the private businesses that create the jobs in this state. “There’s no one knocking on their door asking, ‘How can I help?’” Taormina said. He was one of five business people who spoke at one in a series of meetings billed as legislative fact-finding forums on jobs and regulations in California. Assemblymembers Diane Harkey of San Juan Capistrano, Jeff Miller of Mission Viejo, Chris Norby of Brea, Jim Silva of Huntington Beach and Van Tran of Costa Mesa attended. The complaints ranged from regulations that are poorly conceived and managed to high taxes and overly strict enforcement of simple human paperwork errors. “Regulations are keeping us from growing and are causing us to shrink and lay people off,” Jeff Farano Sr., corporate counsel at SA recycling in Anaheim. He estimated the company had laid off several hundred people in the last several years due in part to the economic downturn, but also regulations that make it difficult to compete. He said the company’s biggest problem was the unequal enforcement of regulations that penalizes large firms like his while small mom and pop operations don’t get regulated. As a result, the small businesses often don’t adhere to regulations, allowing them to undercut costs and making it difficult for larger firms like his to compete. Farano also cited recent California Air Resources Board emission regulations for heavy offroad equipment that have cost his company more than $5 million so far for new parts and equipment. “The state is just over-regulated,” he said. Kurtis Breeding, president of Fletcher Coating Co. in Orange, was concerned about having to comply with the requirements of the South Coast Air Quality Management District while similar companies outside this region don’t have to meet the same strict rules. He said regulations should be statewide so everyone competes on an even level. In addition, he questioned why California imposes stricter standards on businesses in the state, which drives up their costs, then purchases goods and services from out-of-state suppliers because they are cheaper. He recommended the state add a 20 percent charge to out-of-state suppliers to help in-state businesses compete. “Right now there is zero benefit and we continue to be here and support the state,” Breeding said. “We need some incentive to keep us here.” Source: Orange County Register |
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